By Timothy S. Donahue
The manufacturer of Elf Bar vaping products has agreed to a permanent injunction barring the sale and shipment of flavored vapes in California, effectively ending its presence in the state’s retail and online markets.
In a joint motion filed last week in the U.S. District Court for the Southern District of California, iMiracle (HK) Ltd. and Shenzhen Imiracle Technology Co., Ltd. consented to the injunction, which will prohibit the companies from selling or distributing flavored disposable e-cigarettes to any consumer, retailer, wholesaler, or distributor in California.
The order also bans shipments to out-of-state buyers if the companies “know or should know” the products could be resold into the state.
The settlement resolves a lawsuit brought by NJOY LLC, a subsidiary of Altria Group, which alleged that iMiracle’s Elf Bar brand violated California’s flavored tobacco ban and federal law by selling unapproved products without authorization from the U.S. Food and Drug Administration.
NJOY claimed it was placed at a competitive disadvantage because consumers favored cheaper flavored products over its FDA-authorized, tobacco-flavored NJOY Ace device.
Although iMiracle denied any wrongdoing, it agreed to comply with the terms of the injunction, which will remain in effect as long as California’s flavor ban is enforced. If the state repeals or substantially modifies the ban, the injunction will no longer apply.
Court filings indicate that settlement discussions between the two companies began over the summer and concluded this month. The joint motion for a permanent injunction replaces the need for further litigation and gives the settlement judicial enforceability, meaning any future violations could be treated as contempt of court.
The case, NJOY LLC v. Imiracle (HK) Ltd. et al., stems from Altria’s broader 2023 legal campaign against more than 30 manufacturers and distributors accused of illegally marketing flavored e-cigarettes in the United States. Most of those defendants were later dismissed or separated into individual cases. NJOY refiled its complaint in early 2024, focusing solely on iMiracle and its Elf Bar brand.
California’s flavored tobacco ban, enacted in 2022 and upheld by the U.S. Supreme Court, remains one of the strictest in the country. Regulators have stepped up enforcement against flavored vape sales, citing youth use and the proliferation of illicit imports.
The settlement marks one of the first major state-level resolutions permanently barring a global vape manufacturer from a key U.S. market and could serve as a model for similar enforcement actions elsewhere.
Legal counsel for NJOY included Arnold & Porter Kaye Scholer LLP and Noonan Lance & Boyer LLP, while iMiracle was represented by Wilson Sonsini Goodrich & Rosati PC. The motion now awaits final approval from the U.S. District Court for the Southern District of California.
